Chinese Premier Wen Jiabao said on Friday that China's vigorous central government investment included in the stimulus package plan is new.

Wen made the remarks in response to comments saying that China's 4- trillion-yuan (US$585 billion) two-year stimulus package, which was announced in November, did not include new government spending.

"People haven't understood China's package," Wen said.

The 1.18 trillion yuan in the package, which will be funded by the central government, is "completely new," Wen said, adding that 595 billion yuan has already been allocated to that end in the budget.

The stimulus package plan in a whole include four major components, including large-scale government spending, industrial restructuring and rejuvenation, scientific research and social safety net.

Wen said the 1.18 trillion yuan will be used in projects for public welfare, technological innovation, environmental protection and infrastructure projects.

Other projects, including the 600 billion-yuan tax cut, old-age pension increase for enterprise retirees, salary increase to 12 million teachers, subsidies to farmers as well as an 850 billion-yuan three-year investment in health care reform were not included in the 4 trillion-yuan stimulus package, he said.

All investment plans in the massive stimulus package have been fully debated, and would be open for public supervision, he said.

He said the stimulus package included many new projects, such as the housing projects for low-income urban residents.

"We will provide housing to 7.5 million low-income families in three years, and provide better shelter for 2.4 million who still live in shantytowns," the premier said.

Meanwhile, he admitted that some projects in the stimulus package, such as roads and railways, were included in the country's 11th five-year development plan.

The premier also said that China has prepared plans to cope with even bigger difficulties amid the financial crisis and is ready to put forward new stimulus package at any time.

"We have prepared contingency plans to handle greater difficulties. We have prepared enough 'ammunition' and we can launch new economic stimulus policies at any time," he said.

(Xinhua News Agency March 13, 2009)